The UK’s Financial Ombudsman Service has revealed it received more than 140,000 complaints between July and December last year.

The figures represent a 49 per cent increase in complaints compared to the same six-month period of 2023, when 95,349 complaints were recorded.

The Ombudsman Service said that the higher levels of complaints were driven by banking fraud, credit affordability disputes, and motor finance commission cases.

There were 109,155 complaints over the period in the banking and credit sector, compared to 62,139 during the same period of the previous year.

“Behind each case are customers waiting for an answer and we are committed to delivering fair, timely and effective resolutions for consumers and businesses alike," said James Dipple-Johnstone, interim chief ombudsman at the Financial Ombudsman Service. “The high demand reflected in today’s data underscores not only the vital role our service plays, but also the pressing need for reform to ensure it remains fit for the future."

The results come after the Financial Ombudsman introduced a new fee model last month to charge professional representatives who bring more than 10 complaints a year.

The Ombudsman also recently outlined its plans to transform and improve its service to tackle the exceptional demand experienced across 2024/25.

This includes increasing its staffing capacity to resolve complaints and building flexibility into its workforce so that it can respond to changes in demand.

Speaking about the data, Ash Daniells, legal director at international law firm Kennedys, said:
“Complaints about motor finance products continue to increase, which will surprise absolutely no one," The rise will be an ongoing trend for some time, particularly once the Supreme Court decision is handed down, which we understand will be in July. What is concerning is the sheer number of complaints made – almost 142,000, an increase of 49 per cent. It’s clear the Financial Ombudsman Service has lots of work to do if they are going to clear the backlog of complaints they have."

The Supreme Court is expected to make a judgement on a Court of Appeal ruling that has raised the possibility of widespread liability among motor finance firms wherever commissions have not properly disclosed to customers.

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